07 Jul

G2 Web Services Launches Industry’s Most Comprehensive Transaction Laundering Detection Solution

G2 Web Services announces new service to address increasing violations and enable clients to meet new card network compliance standards

 

Bellevue, WA — July 7, 2015 — G2 Web Services, provider of risk solutions to clients with over half of the world’s merchant outlets, today announced the launch of G2 Transaction Laundering Detection. This new service will identify hidden fraud and meet transaction laundering compliance standards published July 1
by MasterCard.

Built utilizing a decade of merchant monitoring data, analysis and expertise, G2 Transaction Laundering Detection is the only multifaceted approach to stop a growing problem previously known as undisclosed aggregation or factoring.

Transaction laundering occurs when a merchant processes unknown transactions on behalf of another business. The hidden business is often engaged in prohibited activities. The “front” merchant may either be colluding with or exploited by the violating business.

“Transaction laundering continues to be a growing problem for the acquiring industry,” said Deana Rich, president of Rich Consulting, Inc., a specialist in risk management and compliance for acquirers. “Extensive knowledge must be combined with cutting edge technologies to reduce and hopefully one day eliminate this problem. The culprits are shrewd, skillful and global.”

On July 1, MasterCard announced a formalized program with incentives to monitor and detect transaction laundering. G2 clients have observed an increase in transaction laundering attempts this year.

“Our clients have told us that they need a more comprehensive solution for identifying transaction laundering to avoid facilitating fraud, regulatory penalties, card network fines and brand damage,” said Allison Guidette, chief executive officer of G2 Web Services. “Transaction laundering is not easy to solve without help. Since a transaction can enter the payment system in numerous ways, identifying the path of the transaction flow is never obvious.”

The multifaceted approach delivered by G2 Transaction Laundering Detection is novel in the payments industry. Utilizing multiple techniques, this solution looks backward from merchants to violators and forward from violators to merchants, providing the industry’s most comprehensive and consistent results. G2 Transaction Laundering Detection allows G2 clients to discover many types of transaction laundering, whether or not they have hosted payment pages.

G2 Transaction Laundering Detection includes:

  • Multifaceted protection
  • Insight from the G2 Merchant Map®, the industry’s most extensive fraud and compliance database
  • Authoritative evaluation from G2 Web Services’ expert compliance and fraud analysts
  • Proprietary methods to catch violators “red-handed” by analyzing traffic and transactions
  • Easy set-up with no integration — a simple extension of G2 Web Services’
    Persistent Merchant Monitoring
  • Portal-based reporting that presents all compliance risk in one place

G2 Web Services recently uncovered a transaction laundering syndicate selling synthetic drugs through restaurant and food supply websites. G2 Transaction Laundering Detection traced a pair of colluding sites to a network of seven more sites and five more laundering pathways. This identification helped multiple G2 clients shut off laundering merchants that were facilitating the payments of prohibited stimulants.

G2 Web Services’ new transaction laundering strategy was profiled on PYMNTS.com. See the article and Karen Webster’s podcast here. Read more about G2 Transaction Laundering Detection at the G2 website.

 

About G2 Web Services

G2 Web Services is a global technology and services company that helps banks, processors and their partners ensure safer and more profitable commerce. Clients representing over half of merchant outlets globally use G2Web Services’ solutions to identify bad actors and keep them out of the payments system. Banks, processors and their partners use G2 Web Services’ tools and expertise to perform better due diligence and monitoring so they can grow their portfolios while taking on acceptable risk. Widely regarded as the market leader, G2 Web Services helps clients confidently handle known and unknown threats and manage changing rules and regulations.

G2 Web Services is headquartered in Bellevue, WA, with offices in London and Shanghai.

Learn more at: www.g2webservices.com

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